Business/Economy

Jumia's profit increased by 6% in Q3 – Official

Supreme Desk
2 Dec 2022 2:57 PM GMT
Jumias profit increased by 6% in Q3 – Official
x
Francis Dufay attributed the revenue growth to the new business strategy deployed by the company during the review period, with a focus on cost discipline and return on investment.

Jumia Nigeria, an e-commerce platform, said on Friday it recorded gross revenue of 50.5 million dollars in the third quarter, up from the 47.6 million dollars reported in the preceding quarter.

Mr. Francis Dufay, Acting Chief Executive Officer, Jumia, said in a statement in Lagos that the company recorded a six percent increase in profit within the period.

Dufay added that the revenue also represented an 18.4 percent increase from the 42.7 million dollars reported in the same period last year.

He attributed the revenue growth to the new business strategy deployed by the company during the review period, with a focus on cost discipline and return on investment.

He added that the company intended to focus more on the core business by allocating capital, resources, and teams to the main areas and projects with attractive returns on investments and clear ecosystem benefits.

Dufay said the company would deemphasize or stop projects and ventures that did not meet such criteria, following the leadership change in Jumia.

He stressed that Jumia was willing to constantly invest in Nigeria and would adjust its organizational setup in the coming weeks.

This, he said, would be achieved by allocating more people and resources to its marketplace, tech, and in-house logistics platform to enhance future success.

"In line with the above, the company will scale back first-party grocery offerings in geographies where this category remains sub-scale."

"In addition, Jumia Prime will be paused indefinitely from Jan. 1, 2023 as the company looks to focus more resources in other areas of the business.

"It is important to note that the company plans to keep logistics open to third parties only in the countries where they have strong assets (Nigeria, the Ivory Coast, and Morocco)," he said.

He added that the e-commerce opportunity in Nigeria remained vast with a very young population and a growing middle class.

"Hence, this new focus will further strengthen the company's hold in its biggest market."

"Clearly, there is strong optimism that this new strategy will continue to deliver value to Jumia's consumers in Nigeria."

"Going forward, the company is looking to continue strengthening its foothold in all the countries where it is currently operational, and this is likely to come with changes to its operating model," he said.

Supreme Desk

Supreme Desk

    Next Story